BILL NUMBER: AB 1604	CHAPTERED  09/13/00

	CHAPTER   424
	FILED WITH SECRETARY OF STATE   SEPTEMBER 13, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 12, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   MAY 30, 2000

INTRODUCED BY   Assembly Member Wesson

                        FEBRUARY 26, 1999

   An act to amend Section 25503.8 of the Business and Professions
Code, relating to alcoholic beverages, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1604, Wesson.  Alcoholic beverage licensees:  "tied-house"
restrictions:  advertising restrictions.
   Existing provisions of the Alcoholic Beverage Control Act known as
"tied-house" restrictions generally prohibit certain alcoholic
beverage licensees from holding an interest in various other
alcoholic beverage licensees.  Existing law generally prohibits a
manufacturer of alcoholic beverages and a winegrower from paying,
crediting, or compensating a retailer for advertising or paying or
giving anything of value for the privilege of placing a sign or
advertisement with a retail licensee.
   Under existing law, the holder of a beer manufacturer's license or
a winegrower's license is permitted to purchase advertising space
and time from or on behalf of an on-sale retail licensee under
certain conditions, if the on-sale licensee owns a specified
facility.
   This bill would extend that authorization to a holder of a
distilled spirits manufacturer's license and to a holder of a
distilled spirits manufacturer's agent's license.
   The bill would include a theme or amusement park and the adjacent
retail, dining, and entertainment area located in the City of Los
Angeles or Los Angeles County within the enumerated facilities
permitted to be owned by an on-sale licensee for purposes of the
purchase of advertising time and space.
   This bill would also make it a misdemeanor for an on-sale retail
licensee subject to the provisions of the bill, to solicit or coerce
a holder of a distilled spirits license to purchase that advertising
space or time.
   By creating a new crime, this bill would impose a state-mandated
local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25503.8 of the Business and Professions Code is
amended to read:
   25503.8.  (a) Notwithstanding any other provision of this chapter,
the holder of a distilled spirits manufacturer's license, a
distilled spirits manufacturer's agent's license, a beer manufacturer'
s or winegrower's license may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee if all of the
following conditions are met:
   (1) The on-sale licensee is the owner of any of the following:
   (A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
   (B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
   (C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
   (D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
   (2) The advertising space or time is purchased only in connection
with one of the following:
   (A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
   (B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
   (C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
   (D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
   (3) The on-sale licensee serves other brands of distilled spirits,
beer or wine in addition to the brand manufactured or marketed by
the distilled spirits manufacturer, distilled spirits manufacturer's
agent, beer manufacturer or produced by the winegrower purchasing the
advertising space or time.
   (b) Any purchase of advertising space or time conducted pursuant
to subdivision (a) shall be conducted pursuant to a written contract
entered into by the holder of the distilled spirits manufacturer's
license, distilled spirits manufacturer's agent's license, beer
manufacturer's or winegrower's license and the on-sale licensee,
which contract shall not in any way involve the holder of a distilled
spirits, beer, or wine wholesaler's license.
   (c) Any holder of a distilled spirits manufacturer's license, a
distilled spirits manufacturer's agent's license, beer manufacturer's
license or winegrower's license who, through coercion or other
means, induces a holder of a distilled spirits, beer, or wine
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (b) shall be guilty of a
misdemeanor and shall be punished by imprisonment in the county jail
not exceeding six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, plus ten thousand dollars ($10,000), or by both
imprisonment and fine.  The person shall also be subject to license
revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces a holder of a distilled spirits, beer, or
wine wholesaler's license to solicit a holder of a beer manufacturer'
s or winegrower's license to purchase advertising space or time
pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor
and shall be punished by imprisonment in the county jail not
exceeding six months, or by a fine in an amount equal to the entire
value of the advertising space or time involved in the contract, plus
ten thousand dollars ($10,000), or by both imprisonment and fine.
The person shall also be subject to license revocation pursuant to
Section 24200.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to permit holders of distilled spirits manufacturers' and
manufacturers' agents' licenses to purchase advertising space and
time under the same conditions as holders of beer manufacturers' or
winegrowers' licenses as soon as possible, it is necessary that this
act take effect immediately.
